transforming new zealand employment relations: the role played by employer strategies, behaviours...

Transforming New Zealand employment relations:The role played by employer strategies, behaviours and attitudes

Erling Rasmussen, Barry Foster & Deidre Coetzee AUT & Massey University, New Zealand

© Rasmussen, Foster & Coetzee 2013

OverviewMajor context & ER changes since late 1980s

Rise in individualism & employer workplace powerWhy hasn’t the outcomes been better better?

Our focus: employer attitudes & strategiesGeneral theme: more employer-driven flexibilityLimited research => our surveys of employers2009-10 surveys: employer attitudes to collective bargaining => find limited active support

Current surveys focus on legislative changes


Path-breaking legislative change

Arbitration system (1894-1991)Employment Contracts 1991

Radical path-breaking ‘non-prescriptive’ frameworkFits with other ‘individualising’ Acts & interventions

Employment Relations Act (ERA) 2000Explicit support of collective bargaining & unionsBUT it doesn’t bring about revival of CB & unions

• Private sector union density falls sharply to below 10%

Key Q: why have outcomes been poor?


NZ union density, 1989-2011Number of unionsMembership Density

(%)September 1989 112 648 825 44.7May 1991 80 603 118 41.5December 1991 66 514 325 35.4December 1993 67 409 112 26.8December 1995 82 362 200 21.7December 1997 80 327 800 18.8December 1999 82 302 405 17.0December 2001 165 329,919 21.6December 2003 181 341,631 21.4December 2005 175 377,348 21.9March 2009 159 387,959 21.5March 2011 145 384,644 20.9


Outcomes have disappointed

Productivity growth has been lowRelative decline for several decades

• Explanations vary: many SMEs, management skills, limited investments, skills, short-term focus, etc.

Inequality has grown above OECD average“Living Wage” campaign has started recentlyLow wages have prompted ‘brain drain’Post 2008 policies: encourage low ER standards

Recently: regulatory failures & ER conflicts


ERA & role of employer attitudesSeveral well-known factors behind union decline: employer attitudes is just one factor

Including: ‘representation gap’, no MECAs, apathy

Earlier surveys find 2 groups of employersAre employers engaged or not engaged in CB?Many employers see unions as ‘irrelevant’

Shift in employer attitudes & behavioursEmployers are seeking fewer regulations Diverse employment outcomes & ‘working poor’


Current surveys 1

Results are based on first surveyEmployers in South Island and Lower North IslandMail survey with response rate 16%

• Follow-up in-depth interviews of some employers

Another survey will provide full national coverage

Overall support of legislative changesEmphasis on employer prerogative (less PG rights), holiday buy-out & union avoidance• Highlights long-term employer concerns


Current surveys 2Appear to have had limited impact

1/3 of employers: new regulations have impacted significantly on their business2/3: have had no or limited impact from new regsER has been impacted: ~23% score yes but ~73% score limited or no impact

Results need to be analysed furtherIs there a time lag; is it only certain types of employers who have seen an impact; does it cover particular groups of employees; does it…..?


Conclusion

Major employer influence on reform agendaSurveys: employers support less legislation

Allows for more employer-determined flexibilityWill mainly influence “lower-end” types of jobs?

Doesn’t have a major ER & business impact?

Early days yet & new 90-day rule appear to be used frequently for certain employee groups

Can more ‘flexibility’, lower taxes & less (employer) compliance raise productivity?


transforming new zealand employment relations: the role played by employer strategies, behaviours...

Documents